TDSAT Sets Aside TRAI Order on Predatory Pricing

Advertisement
By Indo-Asian News Service | Updated: 14 December 2018 16:40 IST

The Telecom Disputes Settlement and Appellate Tribunal (TDSAT) on Thursday dismissed the telecom regulator's order dated February 16, 2018 on predatory pricing due to lack of "transparency".

The tribunal's order comes as a respite to Vodafone Idea - erstwhile Vodafone India and Idea Cellular -- and Airtel who had challenged the TRAI order in March.

Advertisement

"To allow freedom from requirement of non-predation till acquisition of 30 per cent of total activity in a given market prima facie appears to be an extreme step and unnecessary abdication of its regulatory powers by TRAI in the context of tariff conditions and their enforcement," the TDSAT order said.

As per the TRAI rule, a tariff could be predatory only if an operator with over 30 per cent market share offers tariffs lower than the average variable cost. With Thursday's order, the TDSAT has struck down this rule.

"If a new entrant needs to be protected from the rigours of non-predation, it can be done through precision like 'Welcome Offer' and Promotional Scheme as availed recently by Reliance Jio. These can be formalised as just exceptions," it said.

The order noted that the "impugned Tariff Amendment Order is set aside in so far as it changes the concept of SMP (Significant Market Power), non-predation and the related provision".

Advertisement

It ordered TRAI to reconsider the provisions within six months.

"TRAI shall keep all the relevant fact in mind while dealing with the matter in the light of this order of remand of the issues relating to non-predation and SMP (Significant Market Player)," it added.

Advertisement

The tribunal in its 41-page order said that the yardsticks must be objective and known to all the service providers or the task must be left to be dealt with by a complete code such as the Competition Laws so that the competent authority can decide a complaint alleging predation.

 

Get your daily dose of tech news, reviews, and insights, in under 80 characters on Gadgets 360 Turbo. Connect with fellow tech lovers on our Forum. Follow us on X, Facebook, WhatsApp, Threads and Google News for instant updates. Catch all the action on our YouTube channel.

Further reading: TDSAT, TRAI
Advertisement

Related Stories

Popular Mobile Brands
  1. iPhone Duo Screen Repair Costs Almost as Much as an iPhone 18 Pro
  2. These Old Galaxy Flagships Are Getting the Stable One UI 9 Update
  3. Oppo Wide-Folding Phone Key Display Features Tipped
  4. iQOO Pad Pro 8.8 Launch Confirmed; Specifications Teased
  5. Redmi K100 Could Launch Soon at This Price: See Expected Specifications
  6. Samsung Galaxy S27, Galaxy S27+ Could Miss This Selfie Camera Upgrade
  1. Oppo Wide-Folding Phone Key Display Features Tipped Ahead of Launch: Expected Specifications
  2. Google Play Store ‘Shop Devices’ Feature Goes Live in India With Pixel Phones and Accessories
  3. US Crypto Scam Crackdown Brings 241 Website Shutdowns by FBI, Brooklyn DA
  4. Logitech Starts Local Manufacturing in India, Products to Roll Out From Manesar Plant
  5. OnePlus Ace 7, Ace 7 Pro Listed on Google Supported Devices List Ahead of Launch
  6. iPhone Duo Screen Repair in India Costs Almost as Much as an iPhone 18 Pro
  7. DoT Mandates Caller Name Presentation for 5G and 4G Networks From Next Month
  8. iQOO Pad Pro 8.8 Launch Teased; Confirmed to Feature 9,020mAh Battery
  9. Oppo Reno 17 Design Spotted in Leaked Hands-On Image; Oppo Reno 17 Pro Unlikely to Launch in India
  10. Bitcoin Slips Below $81,000 as Hot US Inflation Revives Fed Rate Concerns
Download Our Apps
Available in Hindi
© Copyright Red Pixels Ventures Limited 2026. All rights reserved.